How hawkish will the Fed be ahead of the midterms?


CHERYL: THE JOBS REPORT CAME OUT FRIDAY, BUT THE AVERAGE HOURLY WAGE JUMPED 2.9% FROM A YEAR AGO HIGHER INFLATION COULD FORCE THE FED TO RAISE INTEREST RATES. LET’S BRING IN JOHN. GOOD MORNING.>>GOOD MORNING. CHERYL: WE SAW INTERESTING MARKET ACTION ON FRIDAY AFTER THE JOBS REPORT. THE WORRY NOW IS INFLATION AND THAT INFLATION COULD GET OUT OF CONTROL WITH SUPER PRICES PICKING UP. IN THE S&P 500 ARE UP IN THE US TREASURIES STILL BELOW 3%, SO THAT SHOWS ME THE VOLATILITY WE SAW IN FEBRUARY HAS PRICED SOME OF THIS IN, BUT GRAPHIC RIGHT NOW AND IT’S THE 95th CONSECUTIVE MONTH OF JOB GROWTH. THE ECONOMY HAS BEEN ON FIRE AND AT THE SAME TIME IF YOU LOOK AT JULY PREVENT THE ECONOMY FROM OVERHEATING AND THAT IS GOOD BECAUSE IT CONTROLS INFLATION. MYSTERY TO ECONOMISTS BECAUSE THE JOB MARKET THIS JOB GROWTH AND WE FINALLY– THE QUESTION THE FED IS WATCHING. CHERYL: WE DID SEE PRESSURE ON GOVERNMENT BONDS ON THE TENURE IN PARTICULAR. YOU’RE NOT NECESSARILY THERE SEEMS TO BE MORE>>I AGREE WITH YOU THE FED RAISES RATES IN THE UPCOMING MEETING. THE QUESTION IS HOW HAWKISH WILL THEIR LANGUAGE BE BEFORE THE EVEN OF THE MIDTERM ELECTION. AND THEN THEY WILL WAIT TILL DECEMBER TO SEE IF THEY MAKE THE FINAL MOVE BEFORE YEAR END SO I WOULD EXPECT GREAT INCREASE IN SEPTEMBER, SLIGHTLY MUTED TONE AND THEN THEY WILL LET THE DATA PLAYOFF FOR DECEMBER. CHERYL: UNTIL NEXT WEEK WE DON’T HAVE ANY BIG REPORTS THAT WILL GIVE US INFLATION NEWS. WEEK? WE ARE WATCHING FOR THE QUICK THANK YOU THAT THE NAIL ON THE HEAD. COUPLE MONTHS NOW INTO CERTAIN. WHEEL PRICES HAVE BEEN HIGHER. COMPANIES WERE STRUGGLING WITH COMMODITY PRICES, SO LET’S SEE IF THEY HAVE BEEN ABLE TO PASS THIS THROUGH AND LET’S SEE WHAT HAPPENS IN TERMS OF THE DATA. THERE ARE A LOT OF MOVING PARTS TO KEEP AN EYE ON. CHERYL: I WAS LOOKING MORTGAGE RATES 4.5%, A BIG JUMP FROM LAST

9 Replies to “How hawkish will the Fed be ahead of the midterms?

  1. Everybody thanks Trump the best right now they really need to rethink it I think he's a man with too much power and acting like a kid with it

  2. the fed hates Trump. they'll raise 2x by Nov. election. the fed should be abolished and the non-american owners should be publicly hanged.

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